Coastal SEZ records surge in trade activity, reaches $628M
Coastal SEZ records surge in trade activity, reaches $628M
In the first two months of 2024, imports and exports of goods by factories and manufacturing enterprises in the Sihanoukville Special Economic Zone (SSEZ) reached $628 million, marking a 38.3% increase compared to the same period of 2023, as reported by the General Department of Customs and Excise (GDCE).
“SSEZ continues to enhance industrial competitiveness by focusing on attracting investment in sectors such as machinery, automobile accessories, tyres and new photovoltaic materials,” it said.
It noted that since the start of 2024, the SSEZ has welcomed eight new enterprises, increasing the total number of businesses from various parts of the world to 188.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post that the increase in international orders and the production capacity of factories and enterprises in the zone significantly boosted the value of exports and imports.
He said contributing factors included large international orders, a diverse range of quality goods and a skilled, affordable labour force. He mentioned that the zone’s strategic location also favours transportation.
“With the revision of new investment law and the benefits of bilateral and multilateral free trade agreements [FTAs] Cambodia has signed, trade at the [SSEZ] is expected to generate more income in 2024,” he predicted.
Chea Chandara, president of the Logistics and Supply Chain Business Association (LOSCBA), observed that despite global economic growth not being as robust as before 2020, the zone is still exhibiting positive trends in new investments and trade activities.
“From what I’ve gathered, many new factories are investing there, benefitting from favourable investment conditions, especially in sea freight,” he said.
Chandara noted that most companies in the SSEZ are from China, producing items such as furniture, cosmetic cabinets, tables, plywood, bags and electronics, mainly for export to the EU.
In 2023, the trade value of all factories and enterprises in the zone reached $3.36 billion, a 34.86% increase compared to 2022, representing approximately 7.18% of the country’s total trade volume of $46.83 billion, according to the SSEZ.
